Securities America announced earlier this month the introduction of its Practice Transition Center, designed to provide information and tools to help its registered rep advisors buy or sell an advisory practice.
Introduced at a time when the demographics of the overall advisor industry has made succession planning a key issue for many advisors, the tools include a series of videos with Securities America practice management consultants who explain the issues around practice valuation, due diligence, deal structures and how to best transition clients from one practice to another.
In addition, the site includes a podcast with Securities America advisor Max Briggs of FLC Capital Management in Palm Desert, Calif., on why and how he implemented a continuity plan for his practice.
In a statement announcing the Practice Transition Center, one of Securities America’s practice management consultants, Roger Verboon, said strategic acquisitions allow advisors to, in some cases, “double in size overnight.” But he warns that “while delineating a succession plan is a critical first step, guidelines for executing the plan are equally important.” For example, Verboon said, “We’ve seen excellent plans fail because of delays in the client transition phase.”
In an interview with Securities America CEO Jim Nagengast (left) last year, before the broker-dealer began to face troubles over the sale of certain private placement investments that led to legal and regulatory sanctions and its sale in August by then-parent Ameriprise to Ladenburg Thalman, Nagengast indicated that one of his priorities was helping SAI reps acquire other firms, including financing those acquisitions. Currently, SAI said it has 1,700 reps with about $46 billion in assets under supervision.
In Investment Advisor magazine's annual survey of independent broker-dealers, published in June 2011 with data gathered as of April 1, Securities America reported 1,850 registered reps who averaged $195,000 in annual production.